A more thorough explanation:

An audit response is a letter that an attorney provides to a client's financial auditors upon request. The purpose of the letter is to provide information about matters such as pending or threatened litigation. The American Bar Association has a policy that lawyers must follow when responding to auditors' requests for information.

When a company is being audited, the auditors may request an audit response from the company's lawyer. The lawyer would then provide information about any legal issues that the company is currently facing or may face in the future.

For example, if a company is being sued by a former employee, the lawyer would provide information about the lawsuit in the audit response. This would help the auditors understand the potential financial impact of the lawsuit on the company's financial statements.

Another example would be if a company is involved in a regulatory investigation. The lawyer would provide information about the investigation in the audit response, including any potential fines or penalties that the company may face.

These examples illustrate how an audit response can provide important information to financial auditors, helping them to better understand a company's financial situation.